6b - Temporary Suspension of Impact Fees for Change in UseCIT
Federal Wa
Temporary Suspension of
Transportation Impact Fees for
Change of Use
City Council
January 5, 2016
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CIT
Federal Wa
Policy Question:
Should the Federal Way Revised Code (FWRC) 19.91,
"Transportation Impact Fees" Section 19.91.065
(Temporary suspension of transportation impact fees
relating to change in use) be allowed to sunset?
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CIT
Federal Wa
Background
• Under the Transportation Impact Fees (TIF) program, the City collects
impact fees on all development projects including redevelopment of an
existing building from one use to another use if the change increases
the number of trips generated.
• Due to the economic downturn, in 2011 the City passed a 3-year
temporary suspension of transportation impact fees charged for
changes of use that do not add new square footage. This code expired
December 311 2014.
• In February 2015, the City extended the temporary suspension of
impact fees charged for change of use for one year and requested staff
to report back to Council prior to the end of the year with data (Impact
Fees City not collecting). This code expired December 31, 2015.
• On December 7, 2015 Staff presented the requested data (Impact Fees
for Changes of Use City did not collect in 2015) to the Council LUTC
Committee as ""Information Only
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FWRC 19.91.060 — Assessment of Impact Fees
The impact fee for change of use would be assessed based on the
difference of the fees.
Example: Convert an existing 2,400 SF Single Office Building to a
Restaurant
Land Use
ITE Land
Unit of
Impact
Total Fee
Use Code
Measure
Fee Rate
(SF)
per SF
(2016)
Office — (Existing Use - Credit)
710
21400
$5.64
$13,535
Restaurant — (Proposed Use)
932
2,400
$16.19
$38,855
Total Impact Fee Payment
$25,320
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FWRC 19,91,065 — Temporary Suspension of
Transportation Impact Fee for Change of Use
The impact fee for change of use would only be assessed for project
that expands the gross floor area (GFA) of an existing building based
on the difference of the fees.
Example: Convert an existing 2,400 SF Single Office Building to a
Restaurant
Land Use
ITE Land
Unit of
Impact
Total Fee
Use Code
Measure
Fee Rate
(SF)
per SF
(2016)
Office - (Existing Use - Credit)
710
21400
$5.64
$13,535
Restaurant - (Proposed Use)
932
21400
$16.19
$38,855
Total Impact Fee Payment with Suspension
$0.00
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Public Works:
i Streets *Traffic • Development Services
Solid Waste • Surface Water Management
CIT
Federal Wa
2015 Tenant Improvement Permits exempt from TIF
Payment
Am
Project
Existing Use
Existing Use
TIF
Proposed Use
Proposed Use
TIF
Development
Savings
Ban Somtum Thai Bistro
Office
$11,673
Restaurant
$33,485
$21,812
Sea -Mar Clinic
Old FWPS HQ Building)
Office
$95,645
Clinic
$295,565
$199,920
WSECU
Retail
$5,593
Bank
$56,427
$50,834
Pacific Med Center
(Part of Gateway Center)
Shopping
Center
$38,340
Clinic
$111,653
$73,313
Davita Redondo Heights
Retail
$13,309
Medical Clinic
$59,972
$46,663
Total TIF not collected =
$392,542
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ST., rus
Temporary Suspension of Transportation Impact
Fees for Change of Use
• Prior to Federal Way implementing the Temporary Suspension of
Transportation Impact Fees for Change of Use, City of Kirkland
was the only agency implementing the impact fees suspension
for change of use.
• The City of Kirkland has ended their Temporary Suspension of
Transportation Impact Fees for change of use. To our
knowledge, no other agencies have adopted the suspension.
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Federal Wa
Options
1. Allow the temporary suspension of Transportation
Impact Fees for Change of Use to expire on December 31,
2015, and report back to the LUTC Committee before the
end of 2016 with quantifiable data as to those businesses
that did not move forward with development because of
the impact fees.
2. Direct staff to prepare code amendment enacting
the Temporary Suspension of Transportation Impact Fees
for Change of Use for one year.
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Federal Wa
Committee Recommendation
(LUTC on December 7, 2015)
Allow the temporary suspension of Impact Fees for Change
of Use to expire on December 31, 2015, and report back to
the LUTC Committee before the end of 2016 with
quantifiable data as to those businesses that did not move
forward with development because of the impact fees.
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CIT
Federal Wa
Mayor's Recommendation
Extend the temporary suspension of Transportation Impact
Fees for Change of Use for one year.
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